BELOW the LINE
The millions of jobs paid less than the real living wage
THERE are 2.4 million employees across the UK being paid below the real living wage, official figures have revealed. Currently, the government imposes two types of mandatory payment for employees: the minimum wage and the living wage.
The minimum wage is the minimum amount an employer can legally pay to those aged between 21 and under 25 currently £7.38 an hour outside of London.
Meanwhile, the national living wage is £7.83 an hour, which bosses must pay to employees aged 25 and older. However, there is also a third, optional living wage, called the the real living wage. This is seen as the rate of pay necessary for people to actually be able to live, and is set as £8.75 per hour by campaign group the Living Wage Foundation. It is voluntary for companies to pay this to their staff, with the Foundation estimating that more than 4,500 UK businesses currently do so. Meanwhile, the 2.4 million full-time employee jobs receiving less than £8.75 an hour account for 14.5 per cent of all full-time jobs.
And women are less likely to be paid the living wage than men.
Some 12.4 per cent of full-time employee jobs worked by men (or 1.2 million) were paid less than the living wage.
That compares with 17.8 per cent of full-time employee jobs worked by women (also 1.2 million) that pay less than the living wage.
A survey carried out by the Food Standards Agency in 2017 found that one in four low-income households struggles to eat regularly or healthily because of a lack of money.
A recent study by the Living Wage Foundation found that 71 per cent of parents earning below the real living wage worry so much it affects their day to day lives.
The data excludes London from its results, where the real living cost is £10.20 an hour.
A spokesperson for the Living Wage Foundation said: “The real living wage is the only rate calculated based on what people need to live.
“For workers earning the real living wage it is the difference between struggling to keep their heads above water on the government minimum, and being able to live a dignified life of security and stability.
“We know that it can be challenging to pay a real living wage in sectors such as retail, care and hospitality. However, there are accredited living wage employers in all of these sectors. “They tell us that there are clear benefits to investing in staff pay, for businesses as well as individuals. “But with over 5.5 million workers still earning less than they need to get by, we all need to be asking the employers we know whether they’ve heard of the real living wage and encouraging them to join the movement of businesses, organisations and individuals who campaign for the simple idea that a hard day’s work deserves a fair day’s pay.”